The Crude Oil market, on the D1 chart, was in a strong uptrend with buyers driving prices higher in wave upon wave of bullish momentum. On the 25th of April a higher top was recorded at 75.710 and thereafter sellers found the price attractive. Supply overwhelmed demand and the market started moving downwards.
The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline, both confirming that a likely technical reversal might be in progress.
A possible critical support level formed when a low was recorded at 69.251 on the 6th of May. Buyers are currently trying to push the market higher but a possible resistance level might be at 73.390, where a Shooting Star Candle previously formed and this confirmed that demand could not overcome supply at that point.
If the price of Crude Oil breaks through the critical support level at 69.251, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 69.251 and dragging it to the top of the possible resistance level at 73.390, the following targets may be calculated. The first target can be predicted at 66.693 (161 %). The second price target can be anticipated at 62.553 (261.8%) and the third and final target may be expected at 55.856 (423.6%).
If the possible resistance level at 73.390 is broken, the anticipated scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for Crude Oil on the D1 time-frame will remain bearish.
The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline, both confirming that a likely technical reversal might be in progress.
A possible critical support level formed when a low was recorded at 69.251 on the 6th of May. Buyers are currently trying to push the market higher but a possible resistance level might be at 73.390, where a Shooting Star Candle previously formed and this confirmed that demand could not overcome supply at that point.
If the price of Crude Oil breaks through the critical support level at 69.251, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 69.251 and dragging it to the top of the possible resistance level at 73.390, the following targets may be calculated. The first target can be predicted at 66.693 (161 %). The second price target can be anticipated at 62.553 (261.8%) and the third and final target may be expected at 55.856 (423.6%).
If the possible resistance level at 73.390 is broken, the anticipated scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for Crude Oil on the D1 time-frame will remain bearish.